Giants are entering the psychedelic drug circuit one after another! LY.US plans to acquire ATAIBeckley (ATAI.US) at a premium

The Zhitong Finance App learned that, according to people familiar with the matter, LLY.US (LLY.US) is in negotiations to acquire AtaiBeckley (ATAI.US), which highlights the continuing rise in interest of large pharmaceutical companies in psychedelics, which were once seen as a marginal field. The deal could be announced as early as this week. Affected by news of the acquisition, AtaiBeckley's stock price surged 65% after the market on Wednesday.

Over the past 12 months, shares of New York-based AtaiBeckley have more than doubled to a market capitalization of around $2 billion. According to people familiar with the matter, Eli Lilly is in acquisition negotiations at a premium.

Lilly declined to comment.

The media previously reported that AtaiBeckley is considering selling its flagship drug BPL-003 or seeking cooperative solutions.

The deal will reinforce Eli Lilly's long-term presence in neuroscience medicine, where the company helped change the way depression is treated with Prozac (Prozac) 30 years ago.

Eli Lilly is now known for its best-selling obesity and diabetes medications, but it has also continued to invest in neuroscience, including the development of Alzheimer's treatments and non-addictive pain relievers. People familiar with the matter revealed that Eli Lilly has always been concerned with the field of psychedelic medicine.

According to reports, psychedelics are psychoactive compounds that can alter human consciousness and perception. For a long time, psychedelics have been labeled as dangerous drugs, yet several studies have shown that these substances have important development value in treating mental illnesses such as depression and addiction.

The field has been on the edge of drug development for many years, but the successful commercialization of Spravato drugs under JNJ.US (JNJ.US), impressive clinical trial results, and recent policy support from the Trump administration have injected new vitality into the field. Analysts predict that the psychedelic drug market could reach $7 billion in sales by 2032.

Giants are entering the market one after another, and a new era of psychedelics has arrived?

AtaiBeckley is one of many companies that promise to lead a new era of psychedelics. The company, founded by German entrepreneur Christian Angermayer and supported by billionaire Peter Thiel, is developing drugs to treat intractable depression and social anxiety. Its main drug candidate, BPL-003, is a fast-acting nasal spray.

A mid-term study showed that patients experienced significant improvements in depressive symptoms within just two days after a single dose, and the effects continued for up to eight weeks. The drug was also recognized as a breakthrough therapy by the US Food and Drug Administration (FDA).

Doctors and the company say one of the key benefits of BPL-003 is shorter treatment times. The drug's hallucinogenic effects last about one to two hours, far shorter than some other experimental compounds, such as a drug from Compass Pathways (CMPS.US), which may require up to eight hours of patient monitoring. GH Research (GHRS.US) is developing similar therapies.

“What we really want is a product that is both patient and doctor friendly,” ATaiBeckley CEO Srinivas Rao recently said. “A product that directly follows the Spravato model.”

Other companies in this field include Definium Therapeutics (DFTX.US) and ABBV.US (ABBV.US). Definium Therapeutics is reportedly studying a promising treatment for severe depression based on the potent hallucinogen lysergic acid diethylamine (LSD). AbbVie spent 1.2 billion US dollars last year to acquire Bretisilocin, an experimental antidepressant under GilGameSH. The latter is a next-generation psychedelic compound that aims to preserve the efficacy of antidepressants while shortening the duration of psychoactive experiences and overcoming regulatory and safety challenges in traditional psychedelic drug development.